Minister: Railway action needed

SYDNEY — Provincial Transportation Minister Geoff MacLellan says a meeting between government and railway officials on Friday will help find a way to keep the rail line in Cape Breton open.

But there’s a lot more work to be done, and it needs to happen soon.

The meeting was held in Mayor Cecil Clarke’s office. It was led by federal Transportation Minister Lisa Raitt and included senior executives from CN and Genesee & Wyoming, which owns the Cape Breton & Central Nova Scotia Railway line that runs from Truro to Sydney.

Conservative Sen. Michael MacDonald of Louisbourg also attended the meeting, and provincial Economic Development Minister Michel Samson joined by teleconference.

“Both Genesee & Wyoming and CN understand the economic impact on the region, the importance of this rail line for the economic development opportunities that could exist in Sydney, and just the overall devastating impact abandonment of this line will mean for Cape Bretoners and the economy,” MacLellan said.

“Both private-sector operations have given a commitment to sit at the table, understand in more detail the issues and see where they can help. It’s at least an encouraging sign. They would be well within their rights to walk away and say this isn’t our issue and it’s not financially viable and leave it to the politicians.”

Genesee & Wyoming has said it intends to abandon the Sydney subdivision section of rail line that runs between St. Peters Junction, just outside Port Hawkesbury, and Sydney. The company says 500 railcars move on the subdivision annually, but it needs 10,000 a year to make it financially viable.

The province has spent more than $20 million since 2008 propping up the line, but the railway company says that even with a subsidy of $2 million annually, the line is losing money.

Thirteen companies in Cape Breton need rail service to bring in raw materials for manufacturing, generating about $8 million for the local economy. Businesses say losing the line could cost 300 local jobs.

The provincial subsidy runs out Sept. 30 and officials have asked Genesee & Wyoming to consider keeping the rail line open for one more year beyond that.

MacLellan said a working group needs to be created within the next few weeks.